The Financial Stability Coordination Council (FSCC) reaffirmed the resilience of the Philippine financial system, citing strong capital and liquidity in the banking sector, while flagging the need to monitor concentration risks.

The FSCC is composed of the BSP, Department of Finance, Securities and Exchange Commission, Insurance Commission, and PDIC. It serves as the Philippines’ primary interagency body for monitoring and mitigating systemic financial risks.

During its quarterly meeting on 13 March 2026, Bangko Sentral ng Pilipinas (BSP) Governor and FSCC Chairman Eli M. Remolona Jr. said the country’s banking system remains on firm footing.

“The banking system’s resilience is underpinned by strong capital and liquidity,” Remolona said.

The FSCC said corporate balance sheets remain broadly sound but noted that concentrated corporate exposures could amplify shocks, particularly as linkages between large conglomerates and key sectors continue to deepen.

The council also cited increases in corporate leverage, consumer credit, and housing loans, which it said reflect ongoing economic activity, noting that growth and risk often “travel together.”

To address emerging risks, particularly from non-bank financial institutions adopting new business models, the council said it is expanding its surveillance network, enhancing data quality, and strengthening oversight.

The FSCC also recognized efforts by the Philippine Deposit Insurance Corporation (PDIC) to refine its early intervention frameworks aimed at addressing bank distress and preserving public confidence.

The latest assessment builds on the council’s previous meeting in November 2025, when it identified the mapping of corporate linkages as a priority initiative for 2026 to better detect contagion pathways and stress points in the financial system.

Held last November at the BSP head office, the FSCC also said it was developing an interagency coordinated response protocol to address potential systemic disruptions and improve system-wide monitoring.